OBLIGATIONS

AND
CONTRACTS
Atty. Amado R. Villegas, Jr.
 Obligations and Contracts ARV

Law – is rule of conduct, just, and

obligatory promulgated by
legitimate authority and of
common observance and benefit
(Sanchez Roman)
 Obligations and Contracts

Obligation – is a juridical necessity to

give (REAL), to do or not to do
(PERSONAL) [1156].
Contract – meeting of minds between
two persons whereby one binds
himself with respect to another, to
give something or render some
service [1305].
 Obligations and Contracts

Law – any rule of action or system of uniformity

Law (Sanchez Roman)

Divisions of Law
1. Strict sense (State Law/Imperative/Positive/Municipal)
2. Law in its non legal sense
Divine Law, Natural Law, Moral Law, Physical Law
 Obligations and Contracts

Characteristics of law (4)

(1) rule of conduct

(2) just, and obligatory

(3) promulgated by legitimate authority

(4) and of common observance and benefit

Necessity for law - Order

History of law –
Greece – Rome – Spain – Phils.
 Obligations and Contracts

Sources of Law
◼ Constitution

◼ Legislation

◼ Administrative/Executive Orders Rules and

Regulations
◼ Judicial decisions or jurisprudence

Effect – it becomes the law of the land

(Doctrine of Stare Decisis or Doctrine of Precedent)
◼ Custom

◼ Other Sources (3)

 Obligations and Contracts

3 Branches / Departments of Government

1. Legislative – creates the law
2. Executive – implements the law
3. Judiciary – decides/interprets the law

3 Independent Constitutional Commissions

1. Civil Service Commission (CSC)
2. Commission on Elections (Comelec)
3. Commission on Audit (COA)
 Obligations and Contracts

Title of the law – Civil Code of the Philippines

- Divided into 4 books
- Book 4 is divided into 19 titles

Title of the course – Obligations and Contracts

Citation of law – RA 386

Effectivity of the law – August 30, 1950
 Obligations and Contracts
Organization of Courts
 Obligations and Contracts

Classification of Law
1. As to its purpose
(a) Substantive – “rights and duties of parties”
(b) Procedural/Adjective/Remedial
- provides the remedy/cure

2. As to subject matter
(1) Public law – affects all
(2) Private law –affects certain individuals
 Obligations and Contracts

Latin Terms

Ignorantia Legis Neminem Excusat (Ignorance of

the law excuses no one from compliance
therewith) conclusive presumption

Nemo Est Suprema Lex (No One is above the law)

Dura Lex Sed Lex (Law may be harsh but it is the law)
Law applies to all or none at all
 Obligations and Contracts
Essential elements/requisites of Obligation
(1) Passive subject / debtor / obligor
(2) Active subject / creditor / obligee
(3) Object / prestation / subject matter
(4) Juridical tie / legal tie
Essential elements / requisites of Contract
C – CONSENT – meeting of the minds
O – OBJECT – subject matter
C – CAUSE / causa / consideration / price
 THANK
Atty. Amado R. Villegas,
Jr.
Professor 1, Far Eastern University
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